Quiz 6: Managing Start-Ups and New Ventures

Business

W is choosing the acquisition and joint venture strategy to employ its globalization market strategy in order to open stores across the globe. It is taking all its existing products and tailoring them to the needs of the specific country or culture. This approach helps the management to increase its sales, thereby helping it in capturing more market share. Acquisitions and joint ventures enable for knowledge sharing, thereby helping the firm in gaining more knowledge regarding the particular foreign market.

NOT ANSWER

In buying a franchise office supply store that is for sale, it is important to weigh the merit of the investment. One must ensure that the business to be purchased is an established one, and not a start-up to minimize the risk associated. Evaluating the financial position of the company is the primary need prior to the investment. Moreover, when several outside investors are needed to raise startup costs and franchise fees, certain areas and questions cannot be avoided. Questions that should be answered and enumerated prior to investment and rising fund from outside are: • What stage of business growth is the store currently operating under? • Has the owner/manager already delegated and decentralized the management portions of the different departments, or will extra time be needed to make this part happen? • Will any of the investors require partnership in the venture?